Bitcoin ETF Approval Prospects Rise Despite SEC's Caution

The probability of the U.S. Securities and Exchange Commission (SEC) approving a spot bitcoin exchange-traded fund (ETF) is fairly high, according to brokerage firm Bernstein. While the SEC has allowed futures-based bitcoin ETFs, it has expressed concerns about the reliability and potential manipulation of spot prices. The regulator has yet to approve a spot bitcoin ETF, despite receiving multiple applications. The industry has suggested a surveillance agreement between spot exchanges and regulated exchanges as a potential solution. The lack of a spot bitcoin ETF has led to the growth of over-the-counter products like the Grayscale Bitcoin Trust, which the SEC would prefer to replace with a regulated ETF.